The MSCI index, compiled and announced annually by U.S. investment bank Morgan Stanley, has been the benchmark for international investors together with the FTSE index run by the Financial Times and the London Stock Exchange. (image: Wikipedia)
SEOUL, Nov. 08 (Korea Bizwire) –Daum Kakao Inc. will likely to benefit from the recent inclusion of its stock into the Morgan Stanley Capital International (MSCI) Korea Index after an increase of its market value following a merger with Kakao Inc., in the form of easier financing.
According to financial investment sources on November 7, MSCI Inc. announced on the same day the results of this year’s line-up in which Samsung Techwin was excluded from the list while new entrants such as Korea Plant Service & Engineering and CJ Korea Express were added.
Samsung Techwin, a Samsung Group company specializing in surveillance, aeronautics, and weapons technologies, has seen its share price decline for the past one year and was left out from the MSCI list. Given most foreign investors use the MSCI index as the benchmark when deciding to invest in the Korean market, analysts said, it is inevitable for Samsung Techwin to suffer a setback for the time being.
Daum Kakao (image: Creative Commons)
Daum Kakao was recently included in the index after the merger with Kakao that increased its market capitalization substantially. Korea Plant Service & Engineering and CJ Korea Express were added to the list after satisfying the requirement for actual market cap in circulation. The two companies had met the market cap requirement before but had been unable to fulfill the cutoff level in actual market value in circulation.
The MSCI index, compiled and announced annually by U.S. investment bank Morgan Stanley, has been the benchmark for international investors together with the FTSE index run by the Financial Times and the London Stock Exchange. The total volume of the world’s funds that invest in the MSCI index is estimated at $3.5 trillion.
The MSCI index is classified into large-, mid-, and small-cap indexes. As for the standard index, it is divided into large-cap and small-cap. When the MSCI index is used without any designation, it usually refers to the standard index.
By M.H. Lee (mhlee@koreabizwire.com)
